Chapter 8 : Addressing Existing Public Concerns

8.1     With the full implementation of new strategies and initiatives outlined in the previous sections, our building quality should progressively improve. Nevertheless, we fully appreciate the prevailing public concern and are committed to providing safe and quality buildings to our customers. We will therefore introduce a series of measures to tackle two current public concerns, i.e. piling works and the production peak.

  
Piling Works

8.2     The most fundamental obligation of the construction industry is to deliver safe buildings. The HA will ensure that this requirement is met at all times and without exception. We will not tolerate any sub-standard piling works. However embarrassing, the discovery by the HD of recent isolated malpractices reflects the fact that our monitoring system works. At present, the BC operates an "Early Warning System" under which the details of any sub-standard building projects are released to the public whenever they are discovered, along with the HD's proposed follow-up and remedial actions. This system has worked well and has increased our transparency. The challenge is to make it work better. In this spirit, we will introduce a series of further measures to safeguard the quality of piling works.

8.3     In the short run, we -

(a) will provide a resident engineer for each piling contract to strengthen the professional input and monitoring. We will ensure that the resident engineer and the site supervision team will monitor and witness all critical stages of the piling works, e.g. coring, to make sure that they are properly carried out.
  
(b) are re-checking the piling works of all 106 uncompleted residential projects to ensure that they all meet the required standards. The whole exercise will be completed in two months. Enhancement works will be made whenever necessary.
  
(c) will tighten up the control on sub-contracting activities of piling works. We will require all main-contractors to seek our agreement on the use of their sub-contractors. For large-diameter bored piles and driven piles, we will require the main contractors to own and deploy at least 50% of the piling plants to demonstrate their close supervision of this important work.
  
(d) will engage independent consultants to witness and endorse the final acceptance tests at the end of the piling contracts. These will cover critical aspects, including coring and loading tests which are necessary to verify the pile founding levels and the strength of the piles. Instead of allowing contractors to undertake final acceptance tests, we will conduct these tests by our own testing contractors to enhance the independence of the testing process. These measures will enhance the objectiveness of our piling works.
  
(e) will commission an independent consultant to audit the HD's piling works who will report direct to the BC half-yearly. The consultant will advise on the adequacy of the HD's piling works supervision system and the performance of selective projects with a view to making further improvements.
  
(f) will review the use of pre-cast pre-stressed concrete piles and tighten up implementation specifications. We will not use this piling method for projects where site conditions do not favour its use.
  
(g) will widen the use of engineer's design for sites with complicated geotechnical conditions. This will reduce the risks of contractors in problematic sites.
  
(h) will deploy 37 additional dedicated site staff to supervise in-house piling works, and strengthen the manning-scale of consultants' piling projects.
  
(i) will take a more flexible approach in considering requests from piling contractors to extend the works period of their contracts in hand where there are practical and genuine grounds for doing so.

8.4     In the medium to long run, we will consider -

(a) increasing the qualification and experience requirements for contractors' core site staff. We will ensure that contractors have competent staff to supervise this important task.
  
(b) extending the use of sonic tubes to all large diameter bored-piled projects so that 100% checking can be made if necessary.
  
(c) establishing the HA's own list of piling and goetechnical investigation contractors.
  
(d) establishing Piling PASS to assess contractors' performance more thoroughly and to introduce the Preferential Tender Award System to induce consistent good performance from piling contractors
  
(e) reviewing the basis for determining liquidated damages for piling contracts to achieve equitable risk-sharing.

  
8.5     As some of the recent piling problems may involve corruption and commercial fraud, the HA will work closely with the Government and other stakeholders to uphold the industry's ethical integrity. We will -

(a) continue to work closely with the ICAC in detecting and investigating malpractices. We shall liaise with the ICAC to review our supervision system to identify further improvements for reducing the chances of corruption.
  
(b) recommend that the Government should review the levels of fines regarding sub-standard building works in order to provide a meaningful deterrent against unscrupulous contractors and consultants.
  
(c) urge relevant trade associations and professional institutes in the industry to develop a Code of Practice and other sanction systems to promote the importance of professional integrity amongst their members.

8.6     As the Building Committee's Investigation Panel on Accountability has been looking into the piling problems in Tin Shui Wai, we will make reference to the findings and recommendations of this panel for further improving our piling projects when they are available.

  
Production Peak

8.7     Over compensation for the land supply problem has resulted in some 180,000 new units currently under construction. This production peak has imposed particular pressure and challenges on all those in the supply chain. With the establishment of the Steering Committee on Housing and Land Supply, we look forward to having a steady land supply in the future. Feasts and famines benefit nobody in the industry. A stable land supply and hence a steady housing construction programme are crucial for the healthy development of the industry.

8.8     Despite the production peak and the strong demand for public housing, the HA will not sacrifice quality for quantity. We will stick to our established quality standards. Shoddy products will simply not be accepted even at the expense of programming delays. To cope with the completion of a large number of flats, we will -

(a) conduct more surprise checks by Project Managers and audit teams for all on-going projects. This will strengthen our quality supervision and tackle quality problems at source.
  
(b) contract out part of the final inspection work of new flats to independent monitoring professionals. This will enable the HA to deal with the upsurge in workload given the existing staff resources. It will also enhance the independence and objectiveness of our inspection work.
  
(c) draw up a special operation plan for taking over the large number of new flats scheduled for completion in 2000/01, including providing more intensive training for property management agents and accelerating their involvement in taking over new flats, as they will be the management agents.

These three initiatives will help us to safeguard our quality standards at the completion stage and to steer through the production peak.

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